Business Involvement in Accounting : A Case Study of International Financial Reporting Standards Adoption and the Work of Accountants

Although Byrne and Pierce (2007) find that an increasing regulatory burden may decrease accountants' chances of getting involved in business, little is known about corporate reporting practice and whether, and if yes how, regulation impacts on accountants' work. In order to fill this gap the paper provides a case study analysis of International Financial Reporting Standards (IFRS) adoption and its impact on and implications for an accountant's role, positions, practices and work in a continental European context. This study describes how IFRS expect information preparers to take more responsibility for reporting than domestic accounting standards (DAS). Thus the present study contributes to the literature by arguing that it depends on the set of accounting standards how they impact on accountants' work. The study shows why and how especially IFRS' requirement of "business involvement" in accounting revolutionises accountants' work and how it has implications on their roles, practices and positions in the case firm. Finally, the paper explains how learning and knowledge creation required by IFRS adoption was made possible through communities of practice and hence how it was possible to clarify the responsibilities of divisional and group accountants in the case firm. Thus, the present study enhances our understanding of reporting activity by describing actual practices of and mechanisms used in corporate reporting